Golf & Country Clubs: How Accounting Helps The Golf Industry Make The Most of Their Finance

Written by: Graceeva C. F. & Jonathan

Designed by: Zhyshyliany T.

In this day and age, golf or country clubs provide a wide array of activities, ranging from golfing alone to a smorgasbord of various recreational activities for the benefit of the members. As it is in the latter form of a club that the accounting system will be more extensive and present a greater degree of interest, this article will be devoted to knowing the accounting requirements of a golf or country club.

Nowadays, people prefer to do business with people they like. High-net-worth (HNW) people and the golf industry come hand in hand. They have needs. Networking through golf is recognized in the business world as a possible component of professional development. In golf and country clubs itself, there are several accounting requirements confined.


Accounting systems ensure golf clubs have finer control of their finances. In the golf industry, the usual procedure is to form two separate companies, a golf course or the course itself that acts as a leasing corporation and there is a golf club that rents the course. The leasing corporation is to acquire the land, lay out the golf course, and erect and equip the clubhouse, caddy house, swimming pool, tennis courts, etc. It is customary for the leasing corporation to lease its property to the golf or country club for a rental designed to cover only the actual expense of the leasing corporation, such as interest, taxes, depreciation, etc. The financing of the leasing corporation is accomplished by mortgage loans and by the sale of its capital stock. The sale is usually restricted to the club members and vice versa, where members of the club must take a certain number of shares of the capital stock of the leasing corporation. The organization’s policy usually provides that the earlier members be admitted on condition that, in addition to payment of the regular annual club dues, they acquire a stated number of shares in the leasing corporation, at a stated price. Other than that, later members are required to pay the club an initiation fee designed to cover the increased value of membership in the organization at the time of their admission as members. The golf or country club income comprises initiation fees, annual club dues and locker rentals, guests’ greens fees, tennis and swimming charges, and any excess revenue that may be derived from the restaurant’s operation and the letting of rooms for private parties, etc.


In outlining an accounting system, it will be necessary to consider the methods of management that will be in force in controlling the various activities. At the close of each fiscal year, the finance committee usually has to prepare a budget or estimate of the income and expenditures expected for the coming year. This budget is traditionally presented at the annual meeting for the members’ approval and is used as a guide in the preparation of the monthly and annual statements of accounts. Golfing is a multifaceted business and those who operate their golf clubs and courses have specific needs when it comes to their accounting. There are many different aspects of running a golf course and all will have their levels of expenditure and margin of profit which can muddy the waters when it comes to accurate financial reporting. Keeping track of it all can be a time-consuming process. However, accounting tools can make these steps quicker and easier to enable your golfing business to be more agile and better meet the changing needs of the industry.

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